The Daily Auto Insider: Chrysler will reportedly spend $506.8 million to renovate two Sterling Heights, Michigan plants which will produce a new line of midsize sedans beginning next year.

Chrysler will reportedly spend $506.8 million to renovate two Sterling Heights, Michigan plants which will produce a new line of midsize sedans beginning next year, the Detroit News reported.

The automaker is expected to spend $278 million at its Sterling Heights assembly plant, which builds the Dodge Stratus and , and another $228 million to upgrade a nearby stamping plant.

The projects will prepare the plants for the production launch of the next generation Stratus and Sebring sedans, which are expected by late summer 2006.

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The News said that three midsize models will continue to be assembled at the plant but the new vehicles — which will use a platform jointly developed with Mitsubishi — will be "five inches taller and three inches wider" than the models they replace. They will also be produced with an all-wheel-drive option and optional diesel engine.

The Sterling stamping plant will make sheetmetal for the new midsize cars as well as components for the next generation and 2006 .